The research concludes with some observations and suggestions based on the findings:

• Regarding the large range of terminology in intangible asset reporting one solution could be the use of digital reporting such as Core & More reporting
• An expense disclosure approach would require mandating specified categories to ensure disclosure
• Capitalizing currently expensed intangible-related activities would reduce but not eliminate the information gap
• Aligning intangible asset fair value criteria to IFRS 13 might be a relatively low-cost solution to reduce the information gap
• Disclosure of unrecognized intangibles would also provide a better understanding of capitalized intangible assets

As a solution to the current unsatisfying reporting of intangibles two measures were suggested for intangibles with partial markets: Allowing the revaluation model as an accounting policy choice and allowing estimation of fair value under IFRS 13 along with appropriate disclosures of judgments and estimates. To achieve this, the IASB could amend IAS 38 to provide alternative criteria to “active market” such as “freely transferable” and “commonly traded”. The IASB could develop indicators to assist entities in determining whether the revaluation model policy choice was available. A longer-term project could be to consider measurement for “unique” intangibles referred to in IAS 38

Access the research on the SSRN website. 

Below is an analysis of all changes made to the work plan since our last analysis on July 28, 2023.

Standard-setting projects

• Financial instruments with characteristics of equity — An exposure draft is now expected in November 2023 (previously Q4 2023)
• Management commentary — A decision on the project’s direction is expected in H1 2024 (previously Q4 2023)
• Second comprehensive review of the IFRS for SMEs — A final standard is now expected in 2024 (previously 2025)

Maintenance projects

• Amendments to the classification and measurement of financial instruments — The next project step is now the publication of final amendments in H1 2024
• Amendments to the IFRS for SMEs — International tax reform — The next project step is now the publication of final amendments in September 2023
• Annual Improvements to IFRS Accounting Standards — After the publication of the exposure draft in September 2023, feedback will be discussed in Q1 2024; the following projects are included:
• Cost Method (Amendments to IAS 7)
• Credit Risk Disclosures (Amendments to Illustrative Examples accompanying IFRS 7)
• Determination of a ‘De Facto Agent’ (Amendments to IFRS 10)
• Disclosure of Deferred Difference Between Fair Value and Transaction Price (Amendments to Illustrative Guidance accompanying IFRS 7)
• Gain or Loss on Derecognition (Amendments to IFRS 7)
• Hedge Accounting by a First-time Adopter (Amendments to IFRS 1
• Lessee Derecognition of Lease Liabilities (Amendments to IFRS 9)
• Transaction Price (Amendments to IFRS 9)
• Climate-related and other uncertainties in the financial statements — The project has been renamed; the next project step is now a decision on the project direction expected in H1 2024
• Lack of exchangeability — The project has been removed from the work plan as final amendments were published in August 2023
• Power purchase agreements — A project newly added to the work plan; a decision on the project direction is expected in H1 2024

Research projects

• Business combinations under common control — A decision on the project’s direction is expected in November 2023 (previously September 2023)
• Extractive activities — The next project step is now the publication of a project summary expected in Q4 2023
• Post-implementation review of IFRS 15: Revenue from Contracts with Customers — The feedback received will now be discussed in Q1 2024 (previously H1 2024)
• Post-implementation review of IFRS 9 (Impairment) — The feedback received will now be discussed in November 2023 (previously Q4 2023)

Other projects

• IFRS Accounting Taxonomy Update — Amendments to IAS 12, IAS 21, IAS 7 and IFRS 7 — The proposed IFRS Taxonomy update is expected in October 2023 (previously September 2023)
• IFRS Sustainability Disclosure Taxonomy - Accounting Taxonomy Update — Common practice (Financial instruments) and general improvements — The proposed IFRS Taxonomy update is expected in November 2023 (previously Q4 2023)

The above is a faithful comparison of the IASB and ISSB work plan on July 28, 2023 and September 26, 2023.

For access to the current work plan at any time, please click here

Here are some excerpts from the speech:

“These new changes to our mandate charged us with:

• Supervising federally regulated financial institutions (FRFIs) to determine whether they have adequate policies and procedures to protect themselves against threats to their integrity or security, including foreign interference
• As part of this supervision, examining FRFIs at least annually to determine whether they have adequate policies and procedures to protect themselves against threats to their integrity or security, including foreign interference
• And reporting to the Minister of Finance at least annually on these examinations.

Our role is to ensure federally regulated financial institutions manage risk responsibly, and our new mandate will be to determine whether the policies and procedures they put in place are adequate to protect themselves against those types of threats.”

Re­view the speech on OFSI's web­site.

In September 2022, CPAB released disclosure recommendations from its 2021 consultation, with two phases of changes. They enacted phase one in 2023 and plan to adjust their rules for phase two based on this consultation. Gaining insights from stakeholders holds a significant role in their policy-setting process. Comments received in this consultation will be considered together with feedback received in the 2021 consultation.

The public consultation process is scheduled to conclude on November 24, 2023.

Review the changes and access the consultation survey on the CPAB website.

The amendments modernize and enhance the Names Rule and other names-related regulatory requirements to further the Commission’s investor protection goals and to address developments in the fund industry in the approximately 20 years since the rule was adopted.

The final rule’s amendments “are designed to increase investor protection by improving, and broadening the scope of, the requirement for certain funds to adopt a policy to invest at least 80 percent of the value of their assets in accordance with the investment focus that the fund’s name suggests, updating the rule’s notice requirements, and establishing recordkeeping requirements.”

The final rule will become effective 60 days after the date of its publication in the Federal Register.

Access the press release and the fact sheet on the SEC website.

The Proposed Amendments build upon a WKSI pilot program (the Pilot Program) launched on January 4, 2022, that is designed to reduce the regulatory burden for well-known issuers with established public reporting records in the Canadian capital markets. The Pilot Program has enjoyed widespread adoption by eligible issuers since its introduction, and the Proposed Amendments, if adopted, will help promote transaction certainty and even more closely align the Canadian WKSI regime with that of the United States.

Re­view the notice and request for comments on CSA's website.

The Proposed Amendments build upon a WKSI pilot program (the Pilot Program) launched on January 4, 2022, that is designed to reduce the regulatory burden for well-known issuers with established public reporting records in the Canadian capital markets. The Pilot Program has enjoyed widespread adoption by eligible issuers since its introduction, and the Proposed Amendments, if adopted, will help promote transaction certainty and even more closely align the Canadian WKSI regime with that of the United States.

Re­view the notice and request for comments on CSA's website.

The IASB heard in recent years that climate-related risks are often perceived as remote, long-term risks and may not be appropriately considered in the financial statements and that users need better qualitative and quantitative information about the effect of climate-related risks on the carrying amounts of assets and liabilities reported in the financial statements.

In March 2023, the IASB added a project "Climate-related Risks in the Financial Statements" to its agenda with the first discussions of the project taking place this week. The IASB determined that possible actions resulting from the project would include development of educational materials, illustrative examples and targeted amendments to IFRS Accounting Standards to improve application of existing requirements. The staff will work closely with the ISSB staff to facilitate connections in the Boards’ work. The IASB will also continue to monitor developments to determine whether to take further action.

Finally, the IASB has also decided to rename the project to "Climate-related and Other Uncertainties in the Financial Statements" to stress that the principles-based IASB standards apply to any risk an entity incurs.

Review the news release on the IFRS Foundation website.

Sustainability/environmental, social, and governance (ESG) reporting has quickly become a matter of global importance. A broad range of interested and affected parties are calling on organizations to be transparent about sustainability/ESG matters.

The AASB is monitoring the IAASB’s progress on this initiative, including providing feedback on the IAASB’s meeting agenda papers and has approved a project to adopt ISSA 5000 concurrently in Canada as Canadian Standard on Sustainability Assurance (CSSA) 5000, General Requirements for Sustainability Assurance Engagements. The AASB’s Sustainability Assurance Committee supports the AASB in reviewing and responding to materials issued by the IAASB.

Access the project page on the AASB website.

Specifically, the podcast discusses:

• Support for IFRS S1 and IFRS S2 implementation.
• Engagement with jurisdictions and forming a strategy for the adoption of the ISSB.
• ISSB’s future priorities.

Access the podcast on Youtube.